British shoppers are being urged to exercise extreme caution with buy now, pay later offers during this year's Black Friday sales, as debt charities report unprecedented numbers of consumers struggling with repayment problems.
Money experts have issued stark warnings about the proliferation of BNPL options at online checkouts, with more than one in three Britons planning to use this credit method to spread their shopping costs over the discount weekend.
Record Numbers Seeking Debt Help
Citizens Advice revealed it is currently helping "more people than ever before" with buy now, pay later related issues. The charity emphasised the particular risks for those already struggling with household bills.
The situation appears to be worsening rapidly, with Money Wellness reporting last month as a record period for people seeking assistance with BNPL debt. The organisation anticipates another significant spike in January and February as festive spending catches up with consumers.
Banking industry data shows a dramatic increase in BNPL usage, rising from 14% to 25% of UK adults within just 12 months. This payment method, now common for everything from fashion and electronics to takeaways and concert tickets, typically splits costs into three or four instalments without interest charges if repayments are maintained.
The Hidden Dangers of Interest-Free Credit
Despite the apparent benefits, more than 3 million customers missed BNPL payments in 2024 alone, with some facing debt collection action. The convenience of multiple agreements with different payment dates creates budgeting nightmares for many shoppers.
Sebrina McCullough from Money Wellness explained: "Juggling multiple BNPL payments alongside rent, bills and other debts can quickly become overwhelming. A major issue is having multiple lines of BNPL credit with different payment dates throughout the month, which makes it hard to budget and easy to lose track."
Vikki Brownridge at StepChange delivered a clear message to consumers: "While BNPL is often interest-free, it's certainly not risk-free."
Regulatory Change on the Horizon
The Financial Conduct Authority will begin regulating buy now, pay later agreements on 15 July 2026, marking a significant shift in consumer protection. This means lenders may be required to conduct affordability checks on even the smallest loans.
Jane Parsons from Citizens Advice noted that BNPL has transformed from "a niche payment option to a quick solution for people wanting to bag the latest bargains." She reminded shoppers that it remains a form of credit that "could still deal a heavy blow to your budget, with little protection if things go wrong."
This year's Black Friday on 28 November, followed by Cyber Monday on 1 December, represents the final major shopping period before the new regulations take effect. UK consumers are projected to spend £6.4 billion on Black Friday purchases, slightly up from last year's £6.3 billion, according to PwC UK forecasts.
The BNPL market in Britain is dominated by three main providers: Klarna, Clearpay and PayPal. With the average BNPL transaction standing at £114, and fashion purchases accounting for nearly half of all spending using this credit method, the warnings come at a critical time for consumer finances.
